Higher Ed Policy Roundup: Vol. 8 - Issue 14

Education Department (ED) Secretary Miguel Cardona is set to testify before the Senate Appropriations Subcommittee on Labor, Health and Human Services, Education, and Related Agencies detailing President Biden’s $82 billion fiscal year 2025 budget request for ED. Recall that in early March, President Biden released his budget proposal which included:

• $585 million to strengthen institutions of higher education that serve high proportions of Black and low-income students;
• An increase of $280.6 million for loan servicing activities that includes facilitating return to repayment;
• $76.5 million for Student Aid and Borrower Eligibility Reform that will allow the Office of Federal Student Aid to continue to implement the Fostering Undergraduate Talent by Unlocking Resources for Education (FUTURE) Act and the Free Application for Federal Student Aid (FAFSA) Simplification Act;
• $105.2 million for business process operations to centralize and streamline Federal Student Aid customer interactions with programs such as Public Service Loan Forgiveness (PSLF);
• $250.6 million for data management of programs including PSLF and income-driven repayment (IDR); and
• Eliminating origination fees.

The hearing will take place on Tuesday, April 30 at 10:00 am ET. You can watch the Appropriations Subcommittee hearing.

A recent study on the relationship between student loan debt and academic performance found that the higher a student's loan balance is, the lower their GPA.

A report by the Jain Family Institute revealed the impact of student loan debt cancellation on borrower financial well-being, indicating that debt cancellation leads to increased homeownership probability, higher auto loan balances, and improved credit scores.

The Congressional Research Service updated its list of federal online resources that help students and parents plan and acquire funds for higher education.

The following bill(s) have been recently introduced for consideration by the 118th Congress (2023-2024):

H.R. 8017 – [Rep. Alma Adams (D-NC-12)] would provide for the long-term improvement of minority-serving institutions.

H.R. 8050 – Supporting Parents in Education Act [Rep. Nathaniel Moran (R-TX-1)] would reform the federal Child Care Access Means Parents in School (CCAMPIS) program by removing burdensome program eligibility requirements, allowing more flexibility regarding how institutions allot funds, and incentivizing institutions that coordinate their child care services with their early childhood education program to encourage workforce development.